Diversified Company Performance: Evidence from the United States Airline Industry



Main Article Content

Henrique Machado Barros
Adriana Bruscato Bortoluzzo
Lucas Mello de Campos Arruda

Abstract

This paper analyzes the effect related diversification strategy has on firm performance. Based on a sample of 70% of US airlines, this piece of research investigates the relationship between the degree of diversification and corporate profitability. Multiple linear regression models of panel data (i.e., 6 years) were tested, with model parameters estimated by the Generalized Method of Moments (GMM) technique. We identified that firm performance followed an inverted-U curvilinear pattern. That is, boundary-spanning activities of related diversified firms increase coordination efforts to the extent that, at some point, the benefits of this strategy are offset.

Downloads

Download data is not yet available.


Article Details

How to Cite
Barros, H. M., Bortoluzzo, A. B., & Arruda, L. M. de C. (1). Diversified Company Performance: Evidence from the United States Airline Industry. Journal of Contemporary Administration, 22(1), 23-45. https://doi.org/10.1590/1982-7849rac2018160123
Section
Articles